On December 31, 2010, the bookkeeper for Joseph Company prepared the following income statement and balance sheet summarized here but neglected to consider three adjusting entries.

Data on the three adjusting entries follow:
a. Depreciation of $4,500 on the equipment for 2010 was not recorded.
b. Rent revenue of $1,500 earned for December 2010 was neither collected nor recorded.
c. Income tax expense of $5,100 for 2010 was neither paid nor recorded.

Required:
1. Prepare the three adjusting entries that were omitted. Use the account titles shown in the income statement and balance sheet data.
2. Complete the two columns to the right in the preceding tabulation to show the correct amounts on the income statement and balancesheet.

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Effects of Prepared Adjusting Entries Amounts As Corrected Income Statement Revenues $98,000 (72,000) Income tax expense Net income $26,000 e Sheet Assets $20,000 22.000 Cash Accounts receivable Rent receivable Equipment Accumulated depreciation 50,000 (10,000) $82.000 Liabilities Accounts payable Income taxes payable $10,000 Stockholders' Equity Contributed capital Retained earnings 40,000 32.000 $82,000